Indian MSMEs can join global value chain with ZED model

With the government emphasising on Make in India programme, Micro Small and Medium Enterprises (MSMEs) can improve their export performance by upgrading their quality standards. Experts believe that MSMEs can join the global supply chain by supplying ancillary goods to multinational companies (MNCs) with adherence to Zero Defect Zero Effect (ZED) model.

In this regard, the National Accreditation Board for Education & Training (NABET), under Quality Council of India (QCI), is implementing the ZED Maturity Assessment Model for rating the quality and environmental performance of MSMEs. “The entire process for applying for this rating is made simple and paperless,” informed Jagmohan Bhogal, Cdr (Retd), senior director, NABET at an awareness workshop on ZED rating model, organised by the All India Association of Industries (AIAI), World Trade Centre Mumbai and QCI on May 20, 2016.

During the workshop, Bhogal explained the key features and importance of ZED rating model, lean manufacturing competitiveness scheme and accreditation for business membership organizations (BMO). Bhogal informed that the lean manufacturing competitiveness scheme has so far been implemented in 150 MSME clusters across India and in future more clusters would be encouraged to adopt it.

Bhogal emphasised the importance of accreditation for Business Membership Organisations (BMO). He said BMOs play an important role in linking MSMEs with the government. In future, Government of India would implement most of its policies for MSMEs through accredited BMOs.

Vanita Yadav, director, NABET informed that an accredited BMO has many advantages over an unaccredited entity. Some of the advantages are availability of concessional financial assistance from IDBI and SIDBI, credible recognition from international organisations, better performance and improved service quality for their member organisations.

According to Vijay Kalantri, president, All India Association of Industries (AIAI) and vice chairman, World Trade Centre Mumbai, there is a need for a simplified and paperless procedure to apply for accreditation and quality standard services. “Quality standards have assumed lot of importance in the context of the announcement of the policy on Intellectual Property Rights (IPR) by the Government of India. MSMEs must adhere to strict quality standards in order to improve the market share for their goods and services globally. Many companies became uncompetitive in the global market because of their inability to maintain quality standards,” said Kalantri.